Listing Criteria for the Prime Market
Concept
n For companies which have appropriate levels of market capitalization (liquidity) to be investment instruments for
many institutional investors, keep a higher quality of corporate governance, and commit to sustainable growth and
improvement of medium- to long-term corporate value, putting constructive dialogue with investors at the center.
Listing Requirements
Item Purpose Outline of Listing Requirements
Criteria Initial Listing Continued Listing
Ø Basic criteria to ensure
effective basis of ample No. of Shareholders At least 800 shareholders At least 800 shareholders
Liquidity liquidity for various types of No. of Tradable Shares At least 20,000 units At least 20,000 units
institutional investors to find
the stocks investable
Tradable Share Market Cap At least JPY 10 bn. At least JPY 10 bn.
Trading Value At least JPY 25 bn. mkt. cap At least daily JPY avg. 20 mn.
Ø Basic criteria to ensure Ø To ensure constructive dialogue with institutional investors, must maintain “public market
effective foundation for control” by keeping tradable share ratio, with so-called “stable shareholders” holding less
constructive dialogue between than 2/3 of shares (threshold to pass a special resolution under the Companies Act)
Governance
listed companies and Criteria Initial Listing Continued Listing
institutional investors
※ Revised CG Code fully applied(*) Tradable Share Ratio At least 35% At least 35%
Criteria Initial Listing Continued Listing
Business Total profit for recent 2 yrs.,
Performance Business at least JPY 2.5 bn.
Ø Stable and Excellent ー
Performance Sales at least JPY 10 bn.
Financial Revenue/Financial Base
& market cap at least JPY 100 bn.
Status
Financial Status
(Shareholder Equity)
at least JPY 5 bn. positive
(*) including principles requiring a higher level of governance applied to Prime-listed companies
© 2021 Tokyo Stock Exchange, Inc. 1
Listing Criteria for the Standard Market
Concept
n For companies which have appropriate levels of market capitalization (liquidity) to be investment instruments in
the open market, keep the basic level of corporate governance expected of listed companies, and commit to
sustainable growth and improvement of medium- to long-term corporate value.
Listing Requirements
Item Purpose Outline of Listing Requirements
Criteria Initial Listing Continued Listing
Ø Basic criteria to ensure No. of Shareholders At least 400 shareholders At least 400 shareholders
appropriate liquidity for
Liquidity smooth trading by public No. of Tradable Shares At least 2,000 units At least 2,000 units
investors Tradable Share Market Cap At least JPY 1 bn. At least JPY 1 bn.
Trading Value - At least monthly avg.10 units
Ø Basic level of tradable share ratios required as public company (same level as
Ø Basic level of governance global stock exchanges)
structure to achieve
Governance
sustainable growth Criteria Initial Listing Continued Listing
※ Revised CG Code fully applied Tradable Share Ratio At least 25% At least 25%
Business Criteria Initial Listing Continued Listing
Performance Ø Stable revenue foundation Business Profit at least JPY 0.1 bn. in
ー
and financial status Performance the most recent yr.
Financial
Status Financial Status
(Shareholder Equity)
positive positive
© 2021 Tokyo Stock Exchange, Inc. 2
Listing Criteria for the Growth Market
Concept
n For companies which have a certain level of market value by disclosing business plans for realizing high growth
potential and their progress towards these appropriately and in a timely manner, but at the same time pose a
relatively high investment risk from the perspective of business track record.
Listing Requirements
Item Purpose Outline of Listing Requirements
Ø All requirements below must be met
Ø A business plan to • Reasonable business plans in place
realize high growth • Principle underwriter submits basis for its opinion on companyʼs high growth potential
potential and that • Appropriate disclosure (after listing as well) on business plans and matters related to
Business enables investors to high growth potential (business model, market size, source of its competitive
Plans make reasonable advantages, business risk)
investment decisions Ø Below required to ensure high growth potential is achieved/realized appropriately
based on information
disclosed Criteria Initial Listing Continued Listing
Market Capital － from 10th yr. of IPO JPY 4bn.
Criteria Initial Listing Continued Listing
Ø Minimum criteria to
ensure appropriate No. of Shareholders At least 150 shareholders At least 150 shareholders
Liquidity liquidity for smooth No. of Tradable Shares At least 1,000 units At least 1,000 units
trade by public
investors Tradable Share Market Cap At least JPY 0.5 bn. At least JPY 0.5 bn.
Trading Value - At least monthly avg.10 units
Ø Governance standard Ø Basic level of tradable share ratios required as public company (same level as global
appropriate to the level stock exchanges)(*)
of size of business and
Governance Criteria Initial Listing Continued Listing
growth stage
※Only Basic Principles of Tradable Share Ratio At least 25% At least 25%
CG Code applied
(*) Startups using voting right class shares in IPOs will be subject to the same rules as applied now.
© 2021 Tokyo Stock Exchange, Inc. 3
